Growth of GE in Asia

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General Electric's growth in Asia including: Japan, India, Australia, New Zealand,

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Growth of GE in Asia

  1. 1. Dave Nissen CEO Asia Australia / New Zealand
  2. 2. ANZ: From Start-Up To #6 Assets ($ Billions) $29.0 AVCO • #1 Non-Bank Financial Institution… $0.5 • …Meeting Full Range of Financial Needs… '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 • …With Innovative Products Delivering Value, Convenience and Flexibility Average Annual Growth Rate 50% Since 2000 3 ANZ: Credit Cards Loyalty Bankcard Assets $1.9B $1.4B $1.2B $.3B Low Rate '03 '04 '05 '06E 4
  3. 3. ANZ: Mortgages 77% Brand Awareness Assets $18B $15B Distribution : 250 Branches $13B $0.4B Sponsorship '03 '04 '05 '06E 5 GE Money New Zealand Growth Story Assets $3.0B Mortgages AVCO '99 '00 '01 '02 '03 '04 '05 '06E Building Diversified Portfolio 6
  4. 4. Japan Diversified Player in a Large Market Asset Growth Background & Key Initiatives ($ Billions) ‘94: Entered Japan Consumer $8.9 Finance Market 18% CAGR 18% CAGR ‘98: Acquired ‘Lake’ Personal Loans ‘03: Acquired Card Business $1.2 '94 '98 '00 '02 '04 '05 '06E ’05: Growing Mortgage Platform 8
  5. 5. Japan Environment Market Dynamics Strategic Priorities + ~$4 Trillion Consumer Finance • Evolve Personal Loan Model Market + Economy Growing (GDP 2%) • Continue to Drive Productivity (OPEX 12% vs. ‘04) + Credit Friendly Consumers – New Regulations Impacting • Use BD to Drive Scale Personal Loan Business: – APR Cap ~ 18 - 20% (3 yr phase-in) • Diversify GEM Mix … Grow Card & …Certain Fees Will Be Allowed Mortgage – Increased Consumer Interest Refunds … Factored In ’06A Changing Environment… Strong Long Term Prospects 9 Japan Personal Loans: LAKE Receivables Key Initiatives •Pricing Initiatives - Graduation Pricing $6.8B ~6.6B - Yield Optimization •Continue to Drive Productivity - Fewer Manned Branches '05 '06E •Invest in Automatic Lending Machine Net Revenue Margin % 23% 22% - Refurbish/Relocate - Upgrade Technology 10
  6. 6. Growth in Japan Mortgage Mortgage - Japan GE Assets ($ Billions) Mortgage Market Rising 70% CAGR 70% CAGR Valuations $6.0 GE in 8 Bank Alliance $1.6T (First in Japan) 16% Non- Conforming $1.3 $0.7 ’05 ’06E ’07F ’10F • Bank References for Near Prime, Niche Plays Segment Share: 2% 5% • More GE Distribution… 3X Branches by ‘09 (Non-Conforming) Strong Growth In Non-conforming And Second Mortgage 11 Rest of Asia
  7. 7. Asia: China and India Partnering in China More in India 1. More in China 1. Branches (150+) 7% Share? Shenzhen Development Bank 2. Dual Cards 2. Launch Wizard in India Mortgage Market $80B 33% Wal-Mart $37B Card in ’06 $14B ’02 ’05 ’08F 3. Auto JV (’07) 3. Expand SBI Cards 3MM Cards Partnership Refocusing Management Resources 13 Asia: Emerging Markets Banking Thailand Philippines • Keppel Bank (100%) + Simply Better Banking GE Money Bank of Retail Bank Ayudhya* (24%) Taiwan • Cosmos Bank (10%) Consumerize • Lever GE Expertise on the Bank Auto, P-Loans & Mortgage *Expected to Close January 2007 Targeting $100MM Net Income In 5 Years 14
  8. 8. Asia: Growth through Partnerships SBI Cards – India Hyundai Auto - Korea • #2 Issuer… SBI #1 Bank in Assets… 51%+ • Maintain 85% Auto Loan Segment Share Cards in Force vs ’05 ASF - Indonesia Hyundai Card - Korea • #1 Auto Financier… Increase Astra • Invest in Marketing for Growth… #1 in Sales Share Web Share of Voice Partnering With Market Leaders 15 Total Asia: Simplification / Productivity Key Actions 90 bps 90 bps • Japan Model Restructure 28.2% 27.3% • LCC Targeting Japan, HK & Singapore G&A / CV • Pan Asia Card Back Office • LEAN! ’05 ’06E 16
  9. 9. Performing: Solid Growth Assets ($B) Asia $45.7 $47.2 ~$52.0 • Strong double digit growth ex Japan • Diversify Japan platform & reposition Lake business model '04 '05 '06E • Partner in new developing markets Net Income ($B) • Pursue retail banking $0.9 $1.0 ~$1.0+ opportunities • Continue to grow diversified portfolio in Australia • Drive productivity across the '04 '05 '06E region Asia is a strong growth opportunity for GE Money 17

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